Cryptocurrency exchange Kraken has temporarily suspended Monero deposits in response to a claim that the Qubic mining pool has taken over more than 51% of the network's hashrate, raising security concerns.
Reasons for Monero Deposit Suspension
According to Kraken's official status page, the suspension was put in place after the Qubic mining pool reported that it took control of over half of the network's hashrate. Kraken stated that this step was taken to protect users and maintain network security. Trading and withdrawals for Monero ($XMR) are still functioning normally.
Qubic's Network Control Claims
Qubic, a mining pool started by IOTA co-founder Sergey Ivancheglo, openly admitted to reorganizing six blocks on Monero's blockchain. This was done to highlight potential weaknesses and prepare the community for future risks. The statement faced criticism, with some accusing the group of attempting to weaken a network known for its strength and privacy.
Market Reaction to the Suspension
Following the news of 51% control and the suspension of Monero deposits on Kraken, the price of Monero dropped. At the time of writing, the trading price was around $241.69, down approximately 6%. Analysts note that this situation has added volatility to the crypto market, causing further unease among investors, especially given the existing pressure from regulators on privacy coins.
The suspension of Monero deposits on Kraken highlights the need for caution among major exchanges in the face of potential risks. Although no confirmed double-spending incident has been reported, the event raises critical questions about decentralization and safety that the Monero community must address.
